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Chapter 4: Conducting Marketing Research and Forecasting Demand

GENERAL CONCEP !"E# $ON# Mu%tip%e Choice


1. ________ is the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company. a. Marketing intelligence b. MIS (marketing information system) c. Marketing research d. emographics e. Marketing management !ns"er# c $age# 1%& 'evel of difficulty# (asy &. Marketing research is no" about a ________ billion industry globally. a. )*% b. )&1.* c. )1+.* d. )1% e. ),.* !ns"er# c $age# 1%& 'evel of difficulty# -ard .. /ompanies normally budget marketing research at ________ percent of company sales. a. 1 to & b. & to . c. 0 d. +.* e. 1% to 1& !ns"er# a $age# 1%. 'evel of difficulty# Medium 0. 1hich of the follo"ing types of marketing research firms "ould best be described as being one that gathers consumer and trade information "hich they sell for a fee (e.g., 2ielsen Media 3esearch)4 a. /ustom marketing research firms. b. Syndicated5service research firms. c. Specialty5line marketing research firms. d. 6eneral5line marketing research firms. e. 2on5profit marketing research firms. !ns"er# b $age# 1%. 'evel of difficulty# Medium 7%

$art &# /apturing Marketing Insights

*. If a marketing research firm "ere also kno"n as a field-service firm (e.g., it sells its field intervie"ing services to other firms), it "ould be called a ________. a. custom marketing research firm b. syndicated5service research firm c. specialty5line marketing research firm d. general5line marketing research firm e. systematic marketing research firm !ns"er# c $age# 1%. 'evel of difficulty# Medium +. !ll of the follo"ing "ould be among the "ays that small companies can conduct marketing research in creative and affordable "ays (8/($9 ________. a. using the Internet b. engaging students to design and carry out pro:ects c. checking out rivals d. engaging professors to design and carry out pro:ects e. hiring syndicated5service research firms to conduct pro:ects !ns"er# e $age# 1%. 'evel of difficulty# -ard ,. 9he first step in the marketing research process is to ________. a. develop a research plan b. define the problem and research ob:ectives c. analy;e the internal environment d. read marketing research :ournals e. contact a professional consultant !ns"er# b $age# 1%. 'evel of difficulty# (asy <. 1hich of the follo"ing is considered to be the last step in the marketing research process4 a. $resent the findings. b. !naly;e the information. c. /ontrol the environment. d. Make the decision. e. raft the report. !ns"er# d $age# 1%. 'evel of difficulty# Medium 7. 9he marketing manager needs to kno" the cost of the research pro:ect before approving it. uring "hich of the follo"ing stages of the marketing research process "ould such a consideration most likely take place4 a. Step 1=defining the problem. b. Step 1=creating decision alternatives. c. Step 1=drafting the research ob:ectives. d. Step &=develop the research plan. e. Step .=information collection. !ns"er# d $ages# 1%0>11& 'evel of difficulty# Medium

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1%. esigning a research plan calls for decisions on all of the follo"ing (8/($9 ________. a. drafting research ob:ectives b. data sources c. research approaches d. research instruments e. sampling plans !ns"er# a $age# 1%0 'evel of difficulty# Medium 11. ________ are data that "ere collected for another purpose and already e@ist some"here. a. $rimary data b. Secondary data c. 9ertiary data d. Inordinate e. Ardinate !ns"er# b $age# 1%0 'evel of difficulty# (asy 1&. $rimary data can be collected in several "ays. 1hich of the follo"ing primary data collection methods "ould be e@emplified by constructing see5through mirrors in a retail store "hereby consumersB actions could be recorded4 a. ?ocus groups b. Surveys c. Abservation d. Cehavioral data e. (@periments !ns"er# c $age# 1%* 'evel of difficulty# Medium 1.. ! ________ is a gathering of si@ to ten people "ho are carefully selected based on certain demographic, psychographic, or other considerations and brought together to discuss at length various topics of interest. a. market maven b. virtual research market c. consumer dyad d. focus group e. 2ielsen sample family !ns"er# d $age# 1%* 'evel of difficulty# (asy

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$art &# /apturing Marketing Insights

10. /ompanies undertake surveys to learn about peopleBs kno"ledge, ________, preferences, and satisfaction, and to measure these magnitudes in the general population. a. beliefs b. psyche c. inner id d. deepest secrets e. intelligence and literacy !ns"er# a $age# 1%* 'evel of difficulty# Medium 1*. 9he most scientifically valid research is ________ research. a. observation b. focus group c. survey d. behavioral data e. e@perimental !ns"er# e $age# 1%+ 'evel of difficulty# Medium 1+. !ll of the follo"ing "ould be among the Ddos and donBtsE of Fuestionnaire design (8/($9 ________. a. make Fuestions as simple as possible b. make the Fuestions specific c. ensure that fi@ed responses overlap d. avoid hypothetical Fuestions e. avoid Fuestions "ith a negative in them !ns"er# c $age# 1%, 'evel of difficulty# -ard 1,. 9he most common instrument used to collect primary data is the ________. a. human eye (through observation) b. Internet c. bar code reader (behavioral data research) d. video camera (e.g., focus group research) e. Fuestionnaire !ns"er# e $age# 1%, 'evel of difficulty# (asy 1<. Some marketers prefer more ________ methods for gauging consumer opinion because consumer actions do not al"ays match their ans"ers to survey Fuestions. a. Fuantitative b. Fualitative c. psychographic d. covert e. subliminal !ns"er# b $age# 1%, 'evel of difficulty# Medium

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17. If a marketing researcher observes people using products, shopping, going to hospitals, taking the train, or using their cell phones, the researcher "ould most likely be using "hich of the follo"ing Fualitative research gathering methods4 a. Cehavior mapping b. /onsumer :ournals c. Shado"ing d. (@treme user intervie"s e. Gnfocus groups !ns"er# c $age# 1%, 'evel of difficulty# Medium &%. If a Fuestionnaire designer decides to use a scale that connects t"o bipolar "ords "herein the respondent selects the point that represents his or her opinion, the designer is most likely using "hat is called ________. a. a dichotomous Fuestion b. a multiple5choice Fuestion c. a 'ikert scale d. the semantic differential e. "ord association Fuestion !ns"er# d $age# 1%< 'evel of difficulty# -ard &1. If a marketing researcher chooses to use a "ord association Fuestion (e.g., D"hat is the first "ord that comes to your mind "hen you hear the follo"ing# airlineH !mericanHtravel, et cetera), the researcher has chosen "hich of the follo"ing type of Fuestion for his or her research Fuestionnaire4 a. /losed5end Fuestion b. 'ikert scale Fuestion c. Apen5end Fuestion d. 3ating scale Fuestion e. Semantic differential Fuestion !ns"er# c $age# 1%< 'evel of difficulty# Medium &&. 1hich of the follo"ing types of tests matches to a Fuestion that sho"s a picture and respondents are asked to make up a story about "hat they think is happening or may happen in the picture4 a. 1ord association b. /ompletely unstructured Fuestion c. Story completion d. 9hematic !pperception 9est (9!9) e. -olistic association !ns"er# d $age# 1%< 'evel of difficulty# -ard

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&.. ________ is a Fualitative research approach for getting inside a consumerBs mind and finding out "hat they are thinking or feeling (e.g., a consumer says that the Iohn eere brand makes them think of a rugged Mid"estern male "ho is hard5"orking and trust"orthy). a. 1ord association b. ! pro:ective techniFue c. Crand personification d. 'addering e. Jisuali;ation !ns"er# c $age# 1%7 'evel of difficulty# Medium &0. Mechanical devices are occasionally used in marketing research. ?or e@ample, ________ flashes an ad to a sub:ect "ith an e@posure interval that may range from one hundredth of a second to several seconds. !fter each e@posure, the respondent describes everything he or she recalls. a. a tachistoscope b. the galvanometer c. an eye5tracking camera d. an audiometer e. a pupilometer !ns"er# a $age# 11% 'evel of difficulty# -ard &*. 1ith respect to the sampling plan, three decisions must be made. 9he decisions are# the sampling unit="ho is to be surveyed4 Sample si;e=ho" many people should be surveyed4 !nd ________. a. sample cost=ho" much does sampling cost4 b. surveyor skill="ho "ill do the surveying4 c. sample security=ho" to protect the sample data4 d. sampling procedure=ho" should the respondents be chosen4 e. sample supervisor="ho "ill lead the sampling effort4 !ns"er# d $age# 11% 'evel of difficulty# -ard &+. If a marketing researcher selects the most accessible population members, he or she "ould have selected the ________ sampling method. a. simple random b. stratified random c. cluster d. :udgment e. convenience !ns"er# e $age# 11% 'evel of difficulty# Medium

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&,. If a researcher finds and intervie"s a prescribed number of people in each of several categories, the researcher is using the ________ sampling method. a. :udgment b. Fuota c. convenience d. cluster e. simple random !ns"er# b $age# 11% 'evel of difficulty# -ard &<. If a marketing researcher "ished to reach people "ho "ould not give personal intervie"s or "hose responses might be biased or distorted by the intervie"ers, he or she should choose the ________ as the best "ay to reach people. a. mail Fuestionnaire b. telephone intervie" c. online intervie" d. focus group intervie" e. cell phone intervie" !ns"er# a $age# 111 'evel of difficulty# Medium &7. 1hich of the follo"ing is considered to be the most versatile of the Fuestioning or intervie"ing methods4 a. Mail Fuestionnaire b. 9elephone intervie" c. $ersonal intervie" d. Anline intervie" e. /ell phone intervie" !ns"er# c $age# 111 'evel of difficulty# Medium .%. Anline research has gro"n significantly in the last several years. It is estimated that ________ of all survey5based research "as done online in &%%0. a. * percent b. 1% percent c. 1* percent d. &% percent e. &* percent !ns"er# e $age# 111 'evel of difficulty# -ard .1. 9he ________ phase of marketing research is generally the most e@pensive and the most prone to error. a. research ob:ectives b. research planning c. Fuestionnaire design d. intervie" design e. data collection !ns"er# e $age# 11& 'evel of difficulty# Medium

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.&. !ll of the follo"ing are considered to be advantages of online research (8/($9 ________. a. online research is ine@pensive b. online research is faster c. online research is relatively free of technological problems and inconsistencies d. online research is more versatile e. people tend to be more honest online than in other intervie"ing methods !ns"er# c $age# 11. 'evel of difficulty# Medium ... 1hen Intel commissioned research to better understand global online challenges, it found that "ith respect to global responses on technology the biggest obstacle to conduct international research is ________. a. cost b. lack of consistency c. language difficulties d. religious bias e. lack of managementBs commitment in this area !ns"er# b $age# 110 'evel of difficulty# -ard .0. ! ________ has been defined as being a coordinated collection of data, systems, tools, and techniFues "ith supporting soft"are and hard"are by "hich an organi;ation gathers and interprets relevant information from business and environment and turns it into a basis for marketing action. a. marketing information system b. marketing intelligence system c. marketing decision support system d. marketing research system e. database management system !ns"er# c $age# 11* 'evel of difficulty# Medium .*. !ll of the follo"ing are considered to be among the seven characteristics of good marketing research (8/($9 ________. a. the scientific method b. research creativity c. multiple methods d. ethical marketing e. independence of models and data !ns"er# e $age# 11* 'evel of difficulty# Medium

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.+. In spite of the rapid gro"th of marketing research, many companies still fail to use it sufficiently or correctly. 9he reasons "hy this is true are listed belo" (8/($9 ________. a. a broad conception of the research b. uneven caliber of researchers c. poor framing of the problem d. late and occasionally erroneous findings e. personality and presentational differences !ns"er# a $age# 11+ 'evel of difficulty# -ard .,. In the famous case "here /oca5/ola introduced the 2e" /oke after much research, the failure of 2e" /oke "as largely due to a marketing research barrier identified as ________. a. a narro" conception of the research b. uneven caliber of researchers c. poor framing of the problem d. late and occasional erroneous findings e. personality and presentation differences !ns"er# c $age# 11+ 'evel of difficulty# Medium .<. In the 17,%s, a successful research e@ecutive left 6eneral ?oods for a daring gambit# Cring market research to the -olly"ood film studios and give them access to the same research that spurred 6eneral ?oodsB success. 1hat famous film did he predict "ould be doomed because of its fantasy theme and its attention to "ar bet"een nations (the film "as hugely successful despite these predictions)4 a. The Godfather b. Platoon c. Star Wars d. Butch Cassidy and the Sundance Kid e. The Deer Hunter !ns"er# c $age# 11+ 'evel of difficulty# -ard .7. Marketers are increasing being held accountable for their ________ and must be able to :ustify marketing e@penditures to senior management. a. product Fuotas b. employees c. o"n training d. investments e. personal character traits !ns"er# d $age# 11+ 'evel of difficulty# Medium

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0%. 9"o complimentary approaches to measure marketing productivity are ________ and marketing5mi@ modeling to estimate casual relationships and ho" marketing activity affects outcomes. a. Fuality ratios b. salesperson satisfaction scales c. marketing metrics to assess marketing effects d. distributor satisfaction surveys e. end5user samples !ns"er# c $age# 11, 'evel of difficulty# -ard 01. ________ is(are) the set of measures that helps firms to Fuantify, compare, and interpret their marketing performance. a. Marketing diagnostics b. $sychographics c. emographics d. Marketing intelligence e. Marketing metrics !ns"er# e $age# 11, 'evel of difficulty# (asy 0&. !ccording to 3oger Cest, a strong ________ translates into a strong customer focus, competitor orientation, and a team approach. a. product orientation b. market orientation c. innovation orientation d. productivity orientation e. global orientation !ns"er# b $age# 11, 'evel of difficulty# Medium 0.. !ll of the follo"ing "ould be considered to be e@ternal marketing metrics (8/($9 ________. a. market share b. relative price c. number of complaints d. perceived FualityKesteem e. relative employee satisfaction !ns"er# e $age# 11< 'evel of difficulty# Medium 00. ! ________ records ho" "ell the company is doing year after year on customer5 based measures (e.g., percentage of ne" customers to average number of customers). a. customer5performance scorecard b. stakeholder5performance scorecard c. missionKob:ectives scorecard d. variance scorecard e. management scorecard !ns"er# a $age# 11< 'evel of difficulty# Medium

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0*. If a company actively tracks the performance of its suppliers, banks, and distributors, it is using "hat is called a ________. a. customer5performance scorecard b. stakeholder5performance scorecard c. missionKob:ectives scorecard d. variance scorecard e. management scorecard !ns"er# b $age# 11< 'evel of difficulty# (asy 0+. ________ consists of measuring and evaluating actual sales in relation to goals. a. 3AI analysis b. emand c. Sales analysis d. $erformance revie"s e. 9rend lines !ns"er# c $age# 117 'evel of difficulty# (asy 0,. 1hich of the follo"ing "ays to measure market share "ould be seen as the companyBs sales e@pressed as a percentage of total market sales4 a. Averall market share b. Served market share c. 3elative market share d. elayed market share e. esigned market share !ns"er# a $age# 1&% 'evel of difficulty# -ard 0<. If ell computer "as seen as having a 1&% percent market share and a close competitor "as seen as having 7% percent market share, the market share analysis (measurement) "ould e@pressed as ________. a. overall market share b. served market share c. relative market share d. dual market share e. top dog market share !ns"er# c $age# 1&% 'evel of difficulty# Medium 07. !ll of the follo"ing are components of a method (formula) that can analy;e market share movements (8/($9 ________. a. customer penetration b. competitor penetration c. customer loyalty d. customer selectivity e. price selectivity !ns"er# b $age# 1&% 'evel of difficulty# -ard

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$art &# /apturing Marketing Insights

*%. !nnual5plan control reFuires making sure that the company is not overspending to achieve sales goals. 9he key ratio to "atch is the ________. a. marketing profitability ratio b. marketing sales ratio c. share of mind ratio d. marketing e@pense5to5sales ratio e. marketing deliverables ratio !ns"er# d $age# 1&% 'evel of difficulty# Medium *1. ! ________ can be used to track period5to5period fluctuations in each ratio (e.g., marketing e@pense5to5sales ratio) used assist in annual5plan control. a. 6antt chart b. 'ikert scale c. control chart d. time chart e. profitability chart !ns"er# c $age# 1&% 'evel of difficulty# Medium *&. !ccording to the financial model of return on net "orth, return on assets times ( X) financial leverage eFuals (L) ________. a. profit margin b. asset turnover c. sales e@penses d. rate of return on net "orth e. the acid test ratio !ns"er# d $age# 1&1 'evel of difficulty# -ard *.. 2et profits divided by net sales eFuals (L) ________. a. asset turnover b. profit margin c. return on assets d. financial leverage e. rate of return on net "orth !ns"er# b $age# 1&1 'evel of difficulty# Medium *0. If a companyBs profit and loss statement sho"ed that sales for the month "ere )+%,%%% and cost of goods sold "ere ).7,%%%, "hat "ould be the gross margin4 a. )77,%%% b. )&1,%%% c. +* percent d. 1*..<0 percent e. 1ould be unable to calculate given the problemBs figures. !ns"er# b $age# 1&& 'evel of difficulty# Medium

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**. ! manager observes that his last monthBs salaries "ere )7,.%%, rent "as ).,%%%, and supplies used by the company "ere ).,*%%. /onsidering that his companyBs gross margin "as )&1,%%%, "hat "ould be his net profit for the period4 a. ).+,<%% b. )+%,%%% c. )*,&%% d. )1%,0%% e. 1ould be unable to calculate given the problemBs figures. !ns"er# c $age# 1&& 'evel of difficulty# -ard *+. 1hich of the follo"ing "ould be considered to be a direct cost4 a. 3ent. b. /orporate image e@penditures. c. $ublic relations e@penditures. d. 'easing of business space. e. Sales commissions. !ns"er# e $age# 1&0 'evel of difficulty# -ard *,. ! marketing manager, during an annual planning meeting, "ould like to have the departmentBs staff e@amine the set of consumers "ho have interest, income, and access to the companyBs offers. 9he staff "ill need to e@amine information about the ________ in order to do "hat it has been asked to do. a. potential market b. available market c. target market d. penetrated market e. re5positioned market !ns"er# b $age# 1&+ 'evel of difficulty# Medium *<. ________ for a product is the total volume that "ould be bought by a defined customer group in a defined geographical area in a defined time period in a defined marketing environment under a defined marketing program. a. Market share b. Market supply c. Market demand d. Market potential e. Market penetration !ns"er# c $age# 1&, 'evel of difficulty# Medium

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*7. $roduct penetration is the percentage of o"nership or use of a product or service in a population. !ccording to recent statistics, "hich of the follo"ing products has the greatest amount of penetration in the G.S. market "ith a staggering 7< percent4 a. -ealth insurance. b. ! car. c. ! home. d. ! television. e. ! gun. !ns"er# d $age# 1&7 'evel of difficulty# Medium +%. 9here are several methods for assessing market potential. 1hich of these methods do business marketers prefer4 a. Market5buildup method b. Multiple5factor inde@ method c. Crand5development inde@ method d. $urchase5profitability inde@ e. Market5test inde@ !ns"er# a $age# 1.% 'evel of difficulty# -ard

rue&Fa%se
+1. Most large companies use outside marketing research consultants rather than employ their o"n marketing research department. !ns"er# ?alse $age# 1%& 'evel of difficulty# Medium +&. ! good illustration of a syndicated5service research firm is 2ielsen Media 3esearch. !ns"er# 9rue $age# 1%. 'evel of difficulty# Medium +.. 9he $reston !gency is a field5service firm that sells its field intervie"ing skills and services to other firms. In the above instance, the $reston !gency "ould be an e@ample of "hat is called syndicated-service research firm. !ns"er# 9rue $age# 1%. 'evel of difficulty# Medium +0. !fter developing the research plan, the marketing researcher should define the problem and research ob:ectives. !ns"er# ?alse $age# 1%0 'evel of difficulty# (asy +*. !ll research must begin "ith an e@ploratory research study. !ns"er# ?alse $age# 1%0 'evel of difficulty# (asy ++. Iames conducted primary research "hen he distributed a survey to his dorm to discover their attitudes and opinions on campus life. !ns"er# 9rue $ages# 1%0>1%* 'evel of difficulty# Medium

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/hapter 0# /onducting Marketing 3esearch and ?orecasting emand

+,. In general, for marketing research purposes, the larger focus groups (*% to <%) are superior to smaller focus groups (+ to 1%). !ns"er# ?alse $age# 1%* 'evel of difficulty# Medium +<. ! good e@ample of collecting behavioral data "ould be "hen a store uses scanners to read bar codes on products selected by consumers. !ns"er# 9rue $ages# 1%*>1%+ 'evel of difficulty# Medium +7. 9he most scientifically valid research is focus group research. !ns"er# ?alse $age# 1%+ 'evel of difficulty# Medium ,%. 9he most common instrument used to collect primary data is the Fuestionnaire. !ns"er# 9rue $age# 1%, 'evel of difficulty# (asy ,1. !n e@ample of shado"ing is keeping track of all the interactions a consumer has "ith a product, service, or space. !ns"er# ?alse $age# 1%, 'evel of difficulty# Medium ,&. If a marketing researcher decides to use a 'ikert scale, the researcher has chosen a techniFue "herein the respondent revie"s a statement that sho"s the amount of agreementKdisagreement "ith some product, service, or concept. !ns"er# 9rue $age# 1%< 'evel of difficulty# Medium ,.. D1hat is your opinion of the !merican "ay of life4E is an e@ample of "hat might be called the semantic differential. !ns"er# ?alse $age# 1%< 'evel of difficulty# Medium ,0. D1hat does the /oca5/ola name mean to you4E "ould be an illustration of a Fuestion that might be used in a pro:ective techniFue. !ns"er# ?alse $age# 1%7 'evel of difficulty# Medium ,*. ! galvanometer can measure the interest or emotions aroused by e@posure to a specific ad or picture. !ns"er# 9rue $age# 11% 'evel of difficulty# -ard ,+. If a marketing researcher bases his or her sample on population members "ho are good prospects for accurate information, a :udgment sample has been selected. !ns"er# 9rue $age# 11% 'evel of difficulty# Medium ,,. If a marketing researcher is looking for a contact method that can gather information Fuickly and allo" the intervie"er to clarify Fuestions if necessary, he or she "ill choose the telephone intervie" method. !ns"er# 9rue $age# 111 'evel of difficulty# Medium

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,<. ! good illustration of "hat is called the arranged intervie" occurs "hen intervie"ers stop people in a shopping mall or on a busy street and solicit information necessary to their research effort. !ns"er# ?alse $age# 111 'evel of difficulty# Medium ,7. 9he data analysis phase of the marketing research process is generally the most e@pensive and prone to the error phase of the process. !ns"er# ?alse $age# 11& 'evel of difficulty# Medium <%. Ane of the disadvantages to doing research online is that it is often more e@pensive than traditional means of gathering the same information. !ns"er# ?alse $age# 11. 'evel of difficulty# Medium <1. Ane of the characteristics of good marketing research is that it uses multiple methods. !ns"er# 9rue $age# 11* 'evel of difficulty# (asy <&. Marketing researchers should have a healthy skepticism to"ard glib assumptions made by managers about ho" a market "orks. !ns"er# 9rue $age# 11* 'evel of difficulty# (asy <.. In the famous case "here /oca5/ola introduced the 2e" /oke after much research, the uneven caliber of the researchers doomed the product and associated research efforts. !ns"er# ?alse $age# 11+ 'evel of difficulty# Medium <0. ! set of measures that helps firms to Fuantify, compare, and interpret their marketing performance is called marketin metrics. !ns"er# 9rue $age# 11, 'evel of difficulty# Medium <*. ! stakeholder5performance scorecard tracks the satisfaction "ith the company and its products and services among such entities as suppliers, banks, and stockholders. !ns"er# 9rue $age# 11< 'evel of difficulty# Medium <+. Sales5variance analysis measures the relative contribution of different factors to a gap in sales performance. !ns"er# 9rue $age# 117 'evel of difficulty# (asy <,. !ll the buyers "ho are able and "illing to buy a companyBs products or services are called the overall market share. !ns"er# ?alse $age# 1&% 'evel of difficulty# Medium <<. 9he key ratio to "atch in annual5plan control to make sure that the company is not overspending to achieve sales goals is the marketing e@pense5to5sales ratio. !ns"er# 9rue $age# 1&% 'evel of difficulty# Medium

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<7. 9he return on net "orth is the product of t"o ratios# the companyBs return on assets and its asset turnover ratio. !ns"er# ?alse $age# 1&1 'evel of difficulty# -ard 7%. 6ross margin minus (5) e@penses eFuals (L) net profit. !ns"er# 9rue $age# 1&& 'evel of difficulty# Medium 71. irect costs are common costs "hose allocation to the marketing entities is highly arbitrary. !ns"er# ?alse $age# 1&0 'evel of difficulty# (asy 7&. (specially popular "ith such companies as $rocter M 6amble, marketing5mi@ modeling is used to allocate or reallocate e@penditures. !ns"er# 9rue $age# 1&* 'evel of difficulty# Medium 7.. 9he production department is responsible for preparing sales forecasts because they have the most data about production schedules and the ability to meet orders. !ns"er# ?alse $age# 1&* 'evel of difficulty# (asy 70. ! target market is the set of consumers "ho profess a sufficient level of interest in a market offer. !ns"er# ?alse $age# 1&+ 'evel of difficulty# Medium 7*. Market demand is not a fi@ed number, but rather a function of the stated conditions. !ns"er# 9rue $age# 1&, 'evel of difficulty# (asy 7+. ! lo" market share penetration inde@ indicates substantial gro"th potential for all the firms. !ns"er# 9rue $age# 1&< 'evel of difficulty# Medium 7,. 1ith respect to product penetration percentage, gun o"nership is among the highest in the Gnited States "ith an <0 percent rating. !ns"er# ?alse $age# 1&7 'evel of difficulty# Medium 7<. ! common "ay to estimate total market potential is to use the annual Survey of Cuying $o"er to calculate the reFuired estimate. !ns"er# ?alse $age# 1.% 'evel of difficulty# Medium 77. 9he multiple5factor inde@ method for assessing area market potential is most commonly used by those interested in consumer markets. !ns"er# 9rue $age# 1.1 'evel of difficulty# Medium 1%%. 1ith respect to past5sales analysis, econometric analysis consists of pro:ecting the ne@t periodBs sales by combining an average of past sales and the most recent sales, giving more "eight to the latter. !ns"er# ?alse $age# 1.0 'evel of difficulty# Medium

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$art &# /apturing Marketing Insights

Essa'
1%1. 1hat are the si@ steps in the marketing research process4 #uggested Ans(er: 9he si@ steps are# (1) define the problem and research ob:ectives, (&) develop the research plan, (.) collect the information, (0) analy;e the information, (*) present the findings, and (+) make the decision. $age# 1%. 'evel of difficulty# Medium 1%&. /haracteri;e the structure and purpose of a focus group. #uggested Ans(er: ! focus group is a gathering of si@ to ten people "ho are carefully selected based on certain demographic, psychographic, or other considerations and brought together to discuss at length various topics of interest. $age# 1%* 'evel of difficulty# Medium 1%.. (@plain "hat Fualitative research is and "hy it might be useful to marketers. #uggested Ans(er: Some marketers prefer more Fualitative methods for gauging consumer opinion because consumer actions do not al"ays match their ans"ers to survey Fuestions. Nualitative research techniFues are relatively unstructured measurement approaches to permit a range of possible responses, and they are a creative means of ascertaining consumer perceptions that may other"ise be difficult to uncover. $age# 1%, 'evel of difficulty# Medium 1%0. escribe and illustrate the follo"ing Fuestion formats# dichotomous, 'ikert scale, "ord association, and 9hematic !ppreciation 9est (9!9). #uggested Ans(er: ichotomous Fuestions are Fuestions "ith t"o possible ans"ers. ! 'ikert scale Fuestion is a statement "ith "hich the respondent sho"s the amount of agreementKdisagreement "ith something. 1ord association occurs "hen "ords are presented, one at a time, and respondents mention the first "ord that comes to mind. 'astly, the 9hematic !ppreciation 9est (9!9) has a picture presented to respondents "here the respondents are asked to make up a story about "hat they think is happening or may happen in the picture. See 9able 0.1 in the chapter for specific illustrations. $age# 1%< 'evel of difficulty# -ard 1%*. (@plain "hat a Dpro:ective techniFueE is and ho" it might be used to assist researchers in understanding consumer actions and behavior. #uggested Ans(er: In a pro:ective techniFue, people are presented an incomplete stimulus and asked to complete it or given an ambiguous stimulus that may not make sense in and of itself and are asked to make sense of it. 9he argument is that people "ill reveal their true beliefs and feelings. !n e@ample "ould be to use

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/hapter 0# /onducting Marketing 3esearch and ?orecasting emand

Dbubble e@ercisesE "here different people are depicted in a buying scene and the respondent is asked to indicate "hat they might be saying to one another (e.g., in the blank bubble over their heads). $age# 1%7 'evel of difficulty# -ard 1%+. 1hat is the DchiefE advantage (best method of usage) of using each of the follo"ing contact methods# mail Fuestionnaire, telephone intervie", and personal intervie"4 #uggested Ans(er: 9he DchiefE advantage (best method of usage) of each contact method mentioned is (1) mail Fuestionnaire=the best "ay to reach people "ho "ould not give personal intervie"s or "hose responses might be biased or distorted by the intervie"s, (&) telephone intervie"s=the best method for gathering information Fuickly and the intervie"er is also able to clarify Fuestions if respondents do not understand them, and (.) personal intervie"=the most versatile method because they can ask more Fuestions and record additional observations about the respondent. $age# 111 'evel of difficulty# Medium 1%,. !ccording to information presented in the te@t, "hat are the seven characteristics of good marketing research4 #uggested Ans(er: 9he seven characteristics of good marketing research are# (1) scientific method, (&) research creativity, (.) multiple methods, (0) interdependence of models and data, (*) value and cost of information, (+) healthy skepticism, and (,) ethical marketing. $age# 11* 'evel of difficulty# -ard 1%<. In spite of the rapid gro"th of marketing research, many companies still fail to use it sufficiently or correctly. 'ist and briefly discuss five reasons "hy this might happen. #uggested Ans(er: Carriers to using marketing research effectively are# (1) a narro" conception of the research, (&) uneven caliber of researchers, (.) poor framing of the problem, (0) late and occasionally erroneous findings, and (*) personality and presentational differences. See chapter section for discussion details. $age# 11+ 'evel of difficulty# -ard 1%7. ! manager has a simplified profit5and5loss statement that indicates that sales for the last Fuarter "ere )1&%,%%%, cost of goods sold "as ).*,%%%, and e@penses "ere# salaries L )1%,%%%, rent L ).,%%%, and supplies L ).,%%%. /alculate the net profit. #uggested Ans(er: 3efer to 9able 0.+ for additional assistance. 6iven the numbers in the e@ercise, net profit "ould be )+7,%%% or sales ()1&%,%%%) minus (5)

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$art &# /apturing Marketing Insights

cost of goods sold ().*,%%%) eFuals (L) gross margin ()<*,%%%). Subtract (5) e@penses ()1+,%%%) from the gross margin ()<*,%%%) to get the net profit of )+7,%%%. $age# 1&& 'evel of difficulty# Medium 11%. escribe the follo"ing terms and then construct an illustration to demonstrate the relationships involved# potential market, available market, Fualified available market, target market, and penetrated market. #uggested Ans(er: 9he !otential market is the set of consumers "ho profess a sufficient level of interest in a market offer. 9he availa"le market is the set of consumers "ho have interest, income, and access to a particular offer. 9he #ualified availa"le market is the set of consumers "ho have interest, income, access, and Fualifications for the particular market offer. 9he tar et market is the part of the Fualified available market the company decides to pursue. 9he !enetrated market is the set of consumers "ho are buying the companyBs product. See chapter section for illustrations of the terms. $age# 1&+ 'evel of difficulty# -ard

APPL$CA $ON !"E# $ON# Mu%tip%e Choice


111. $rocter M 6ambleBs /onsumer M Market Ono"ledge (/MO) group focuses on three kinds of "ork# ________, e@pert application of, and cross5business learning kinds of "ork, and shared services and infrastructure. a. psychographics b. database management c. proprietary research methods development d. global survey research e. brand competition research !ns"er# c $age# 1%& 'evel of difficulty# Medium 11&. !ssume that you are a marketing research director for a medium5si;ed manufacturing firm and you "ould like to engage an outside marketing research firm to conduct your field intervie"s. 1hich of the follo"ing options "ould be your best choice to achieve your ob:ective4 a. ! syndicated5service research firm. b. ! custom marketing research firm. c. ! global research management firm. d. ! specialty5line marketing research firm.

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/hapter 0# /onducting Marketing 3esearch and ?orecasting emand

e. ! brand5management specialty research firm. !ns"er# d $age# 1%. 'evel of difficulty# -ard 11.. !s a marketing research manager you have begun calculations on the costs of a proposed marketing research pro:ect. uring "hich stage of the marketing research process are such calculations most likely to take place4 a. Stage 1=define the problem phase. b. Stage 1=develop decision alternatives phase. c. Stage 1=develop the research ob:ectives. d. Stage &=develop the research plan. e. Stage .=collect the information. !ns"er# d $age# 1%0 'evel of difficulty# Medium 110. Cefore Sandra $ere; opened her floral shop she read all she could on the industry. She also revie"ed library data banks on gro"th patterns in the local area "ith particular interest in the location of florists throughout the city. 9his ________ assisted her in deciding "here to locate her store. a. primary information b. secondary information c. guerilla marketing data d. tertiary information e. non5personal information !ns"er# b $age# 1%0 'evel of difficulty# Medium 11*. !s one marketing e@ecutive noted, ________ are DHthe most cost5effective, Fuickest, dirtiest "ay to get information in rapid time on an idea.E a. scanners b. tele5us machines c. surveys d. in5store intervie"s e. focus groups !ns"er# e $age# 1%+ 'evel of difficulty# -ard 11+. Ane of the donBts of Fuestionnaire construction is to ensure that fi@ed responses do not overlap. 1hich of the follo"ing is the best illustration of a problem that this DdonBtE might cause4 a. ! Fuestion has three possible responses# yes, no, or maybe. b. !n income Fuestion asks for an income designation in one of the follo"ing income categories# )%>)&%,%%%, )&%,%%%>)0%,%%%, or )0%,%%% and above. c. ! consumer is asked to describe a recent event "ill driving. d. ! consumer must describe a cartoon about buying a car. e. ! consumer is asked "hether or not he or she could spy on another consumerBs shopping e@perience. !ns"er# b $age# 1%, 'evel of difficulty# Medium

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$art &# /apturing Marketing Insights

If a Fuestionnaire says DSmall college classes are better places to learn effectively# (choose) 1__ Strongly disagree, & __ isagree, .__ 2either agree nor disagree, 0__ !gree, *__ Strongly agree,E the researcher "ould be using "hich of the follo"ing to discover data. a. 'ikert scale b. Semantic differential c. Multiple choice d. 9hematic !ppreciation 9est (9!9) e. ichotomous Fuestion !ns"er# a $age# 1%< 'evel of difficulty# Medium 11<. Ane set of consumers, during a focus group session, indicated that ell computers reminded them of a surfer, !pple /omputer "as eFuated to a mad5scientist, and ICM computers to Scrooge from the ickensBs tale. 1hich of the follo"ing Fualitative research approaches matches to the approach described above4 a. $ro:ective techniFues b. Jisuali;ation c. Crand personification d. 'addering e. $yramiding !ns"er# c $age# 1%7 'evel of difficulty# -ard If you decided to intervie" members of your class "ith regard to issues relating to the university and college life, you "ould have selected the ________ as a means of sampling members of the total population. a. simple random sample b. stratified random sample c. cluster (area) sample d. convenience sample e. Fuota sample !ns"er# d $age# 11% 'evel of difficulty# Medium 9he main dra"back to the ________ is that the intervie"s have to be short and not too personal. a. mail Fuestionnaire b. personal intervie" c. online intervie" d. secondary intervie" e. telephone intervie" !ns"er# e $age# 111 'evel of difficulty# Medium 1&%.

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/hapter 0# /onducting Marketing 3esearch and ?orecasting emand

1&1.

1hich of the follo"ing should be considered as a disadvantage by a marketing researcher as he or she considers "hether or not to use online research as a means of gathering data4 a. Anline research is often slo". b. Anline research is usually e@pensive. c. Anline line research is one5dimensional. d. Anline line research suffers from a poor reputation. f. Anline market research is prone to technological problems and inconsistencies. !ns"er# e $age# 11. 'evel of difficulty# Medium 1&&. If a marketing researcher "ere to use careful observation, hypotheses, prediction, and testing to ensure that his or her marketing research efforts "ere of the highest Fuality, the researcher "ould have then used ________ characteristic of good marketing research to assist in the research effort. a. research creativity b. the scientific method c. ethical marketing d. multiple methods e. interdependence of models and data !ns"er# b $age# 11* 'evel of difficulty# Medium 1&.. Some marketing managers vie" marketing research as little more than a clerical activity and treat it as such. If disappointing results occur because of this attitude, the manager has his or her negative opinion reinforced. 9he above is a reflection of "hich of the follo"ing barriers that must be overcome if successful marketing research is to occur4 a. Gneven caliber of researchers. b. $oor framing of the problem. c. (rroneous findings. d. $ersonality differences. e. $resentation differences. !ns"er# a $age# 11+ 'evel of difficulty# (asy 1&0. !ccording to $eter oyle, value5based marketing in not primarily about numbers. It consists of three main elements# ________, a set of principles for choosing marketing strategies and making marketing decisions, and a set of processes that ensure that marketing develops, selects, and implements a strategy that is consistent "ith these beliefs and principles. a. a set of beliefs about consumers b. a set of beliefs about demographics c. a set of beliefs about organi;ational design d. a set of beliefs about the fundamental soundness of Fuantitative methods e. a set of beliefs about the ob:ective of marketing !ns"er# e $age# 11, 'evel of difficulty# -ard

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$art &# /apturing Marketing Insights

1&*.

! useful "ay to analy;e market share movements is in terms of four components "here overall market share eFuals (L) customer penetration times (X) customer loyalty times (X) customer selectivity times (X) ________. a. promotion sensitivity b. price selectivity c. brand loyalty d. cultural affinity e. distribution opportunities !ns"er# b $age# 1&% 'evel of difficulty# -ard 1&+. Ane of the essential components of a model for calculating return on net "orth is financial leverage. In this conte@t, financial leverage is eFual (L) to ________. a. net profits divided by net sales b. net sales divided by total assets c. total assets divided by net "orth d. net profits divided by total assets e. net profits divided by net "orth !ns"er# c $age# 1&1 'evel of difficulty# -ard 1&,. Sally is revie"ing ho" to re5figure a variety of e@penses and costs associated "ith a recent marketing effort. -er first task is to identify the direct costs associated "ith that effort. 1hich of the follo"ing "ould be the best e@ample of a direct cost associated "ith a marketing effort4 a. 3ent b. $ublic relationBs image c. 9op management salaries d. Sales commissions e. Interest on debt !ns"er# d $age# 1&0 'evel of difficulty# Medium 1&<. Iason is e@amining a recent breakdo"n of his companyBs 1est /oast market. 9he terms in the report are some"hat confusing since there "as no attached vocabulary key to assist the uninformed reader. Iason is looking for the set of consumers "ho are currently buying his companyBs products. 1hich of the follo"ing terms "ill assist him in finding the right column for his data Fuery4 a. $otential market b. Ci5lateral market c. !vailable market d. 9arget market e. $enetrated market !ns"er# e $age# 1&+ 'evel of difficulty# Medium

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/hapter 0# /onducting Marketing 3esearch and ?orecasting emand

1&7.

! high market penetration inde@ suggests that ________. a. a substantial gro"th potential e@ists for all firms in the market b. there "ill be increased costs of attracting the fe" remaining prospects c. mistakes have been made in selecting the correct promotional alternatives d. the price of the product or service is too high "ith respect to competition e. it "ould be great time to e@pand distribution outlets !ns"er# b $age# 1&< 'evel of difficulty# -ard 1.%. ! marketing research firm intends to ask consumers a Fuestion that reads D o you intend to buy a automobile "ithin the ne@t si@ months4E /onsumers could respond in several "ays including no chance, slight possibility, fair possibility, good possibility, high possibility, and certain. 1hich of the follo"ing terms most accurately categori;es the type of scale that the marketing researcher "ill "ant to use in the research effort4 a. Cuying ratio scale b. Cehavioral scale c. !ttitude scale d. $urchase probability scale e. Market5test scale !ns"er# d $age# 1.. 'evel of difficulty# Medium

#hort Ans(er
1.1. efine marketing research. #uggested Ans(er: $arketin research is seen as a systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company. $age# 1%& 'evel of difficulty# (asy 1.&. 9he te@t lists several creative "ays that a small company can conduct marketing research "ithout incurring the high costs often associated "ith a marketing research effort. 'ist three methods that might be considered to be creative. #uggested Ans(er: 9he three methods are# (1) engaging students or professors to design and carry out pro:ects, (&) using the Internet, and (.) checking your rivals. $age# 1%. 'evel of difficulty# Medium 1... uring "hich phase of the marketing research process "ill the marketing manager most likely calculate the cost of the marketing research plan4 #uggested Ans(er: 9he most likely phase "ill be the second phase (develop the research plan). $ages# 1%.>1%0 'evel of difficulty# Medium

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$art &# /apturing Marketing Insights

1.0.

If a company desires to assess the magnitude of consumersB kno"ledge, beliefs, preferences, and satisfaction, the company "ill most likely choose "hich of the five research approaches outlined in the te@t4 #uggested Ans(er: 9he company "ill most likely choose the survey research approach. $age# 1%* 'evel of difficulty# Medium

1.*. If you needed to collect primary data and "ere seeking to use the research instrument that is considered to be the most common method for obtaining that type of data, "hat type of instrument "ould you select4 #uggested Ans(er: 9he company should choose the #uestionnaire as the instrument to collect data. It is by far and a"ay the most common method for obtaining primary data information. $age# 1%, 'evel of difficulty# (asy 1.+. If a marketing research firm has decided to photograph people "ithin the lobby of a movie theater over a t"o5 to three5day period, "hat Fualitative measure approach "ill most likely be used to accomplish this task4 #uggested Ans(er: Af the seven methods described in the te@t, the most likely "ill be "ehavior ma!!in . See chapter section for more details. $age# 1%, 'evel of difficulty# -ard 1.,. 9he Cledsoe Marketing 3esearch group has been hired to administer a series of DyesKnoE Fuestions to shoppers in a local mall. If Fuestions on a survey have only t"o possible ans"ers (such as DyesKnoE Fuestions), "hat type of Fuestions are these4 #uggested Ans(er: Nuestions of this type are closed-end #uestions that are dichotomous in nature. Students may use either term for credit unless the instructor prefers other"ise. $age# 1%< 'evel of difficulty# (asy 1.<. ! marketing manager "ould like to ask a fe" simple Fuestions of his or her companyBs target market (a population). If the manager "ould like to ensure that every member of that population has an eFual chance of being chosen for Fuestioning, the manager "ould need to select "hich sampling method4 #uggested Ans(er: ! probability sample can be taken using a sim!le random sam!le. See chapter section for additional details. $age# 11% 'evel of difficulty# Medium

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/hapter 0# /onducting Marketing 3esearch and ?orecasting emand

1.7.

escribe "hat might occur in an intercept intervie". 1hat are the chief disadvantages of this method of contact4 #uggested Ans(er: %nterce!t intervie&s involve stopping people at a shopping mall or busy street corner and reFuesting an intervie". Intercept intervie"s can have the dra"back of being nonprobability samples and the intervie"s must not reFuire too much time. $age# 111 'evel of difficulty# Medium

10%.

'ist the four advantages of conducting marketing research online. #uggested Ans(er: 9he advantages are# (1) online research is ine@pensive, (&) online research is faster, (.) people tend to be more honest online than they are in personal or telephone intervie"s, and (0) online research is more versatile. $age# 11. 'evel of difficulty# -ard

101.

escribe (define) a marketing decision support system (M SS). #uggested Ans(er: ! marketin decision su!!ort system is defined as being a coordinated collection of data, systems, tools, and techniFues "ith supporting soft"are and hard"are by "hich an organi;ation gathers and interprets relevant information from business and environment and turns it into a basis for marketing action. $age# 11* 'evel of difficulty# Medium

10&.

escribe ho" ethical marketing assists a desire to have good marketing research. #uggested Ans(er: Marketing research benefits both the sponsoring company and its customers. 9he misuse of marketing research can harm or annoy customers, increasing resentment at "hat consumers regard as the invasion of their privacy or a disguised sales pitch. See 9able 0.. for additional details. $age# 11* 'evel of difficulty# Medium

10..

Many managers see marketing research as a fact5finding operation. Is this a correct vie"4 (@plain. #uggested Ans(er: Managers e@pect the researcher to design a Fuestionnaire, choose a sample, conduct intervie"s, and report results, often "ithout a careful definition of the problem or of the decisions facing management. 1hen fact5 finding fails to be useful, managementBs idea of the limited usefulness of marketing research is reinforced. $age# 11+ 'evel of difficulty# Medium

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$art &# /apturing Marketing Insights

100.

'ist four e@ternal marketing metrics that "ill be useful for the marketing researcher. #uggested Ans(er: 9he te@t lists ten e@ternal marketing metrics (see 9able 0.0). 9hey are# a"areness, market share (volume or value), relative price (market share valueKvolume), number of complaints (level of dissatisfaction), consumer satisfaction, distributionKavailability, total number of customers, perceived FualityKesteem, loyaltyKretention, and relative perceived Fuality. Students may choose any of the above. $age# 11< 'evel of difficulty# -ard

10*.

Sales analysis uses t"o specific tools for measuring and evaluating actual sales in relation to goals. 1hat are those t"o tools4 #uggested Ans(er: 9he t"o tools are# (1) sales5variance analysis and (&) microsales analysis. $age# 117 'evel of difficulty# Medium

10+.

!nnual5plan control reFuires making sure that the company is not overspending to achieve sales goals. 1hat key ratio is "atched closely4 -o" are fluctuations of this ratio tracked4 #uggested Ans(er: 9he key ratio to "atch is the marketin e'!ense-to-sales ratio. 9his ratio is tracked using a control chart. $age# 1&% 'evel of difficulty# Medium

10,.

If a researcher is interested in the Fualified available market, ho" "ould you describe this market4 #uggested Ans(er: 9he #ualified availa"le market is the set of consumers "ho have interest, income, access, and Fualifications for the particular market offer. $age# 1&+ 'evel of difficulty# Medium

10<.

It is often necessary for marketers to understand the nature of market demand. efine market demand. #uggested Ans(er: $arket demand for a product is the total volume that "ould be bought by a defined customer group in a defined geographical area in a defined time period in a defined marketing environment under a defined marketing program. $age# 1&, 'evel of difficulty# Medium

107.

1hat is the difference bet"een company demand and a company sales forecast4 #uggested Ans(er: Com!any demand is the companyBs estimated share of market demand at alternative levels of the company marketing effort in a given

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/hapter 0# /onducting Marketing 3esearch and ?orecasting emand

time period. 9he com!any sales forecast is the e@pected level of company sales based on a chosen marketing plan and an assumed marketing environment. $age# 1&7 'evel of difficulty# Medium 1*%. /reate a Fuestion and an associated scale that illustrate a purchase probability scale. #uggested Ans(er: 9he te@t suggests a Fuestion such as D o you intend to buy an automobile "ithin the ne@t si@ months4E 9he range of the associated scale "ould then be# no chance, slight possibility, fair possibility, good possibility, high possibility, and certain. Students are to create their o"n e@ample but the e@ample should be in keeping "ith the material in the te@t. $age# 1.. 'evel of difficulty# -ard

11<